The following amounts appeared on Plymouth Electronics' adjusted trial balance as of December 31, 2020.

DebitCreditMerchandise inventory$18,700Other assets479,785Liabilities$304,370Celine Plymouth, capital242,765Celine Plymouth, withdrawals66,200Sales934,000Sales discounts13,780Sales returns and allowances4,915Interest income640Cost of goods sold715,000Sales salaries expense78,400Office salaries expense55,700Rent expense, selling space32,200Rent expense, office space2,200Store supplies expense1,540Office supplies expense695Depreciation expense, store equipment8,110Depreciation expense, office equipment1,960Insurance expense2,590Totals$1,481,775$1,481,775

Required:

1.Prepare 2020 classified multiple-step income statement for Plymouth Electronics.

2.Prepare single-step income statement.

Analysis Component:

Calculate the gross profit ratio for the year ended December 31, 2020, and compare it to the prior year, commenting on whether the change was favourable or unfavourable.The gross profit ratio for Plymouth Electronics' year ended December 31, 2019, was 32%.(Do not round intermediate calculations. Round your answer to2 decimal places.)